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Vision: a united and prosperous agricultural sector.

It defines a united sector served by a unimodal policy framework and implies sustained profitable participation in the South African economy by a full spectrum of economic entities. The vision acknowledges the diversity of the sector and aims to ensure a place and role for all farmers in a united sector.

Policy Priorities

Sustainable Agricultural Policy

WORLD SUMMIT ON SUSTAINABLE AND DEVELOPMENT

As developing nations sustainable development is of extreme importance. The following warrant major attention in achieving the latter:

* Achieving of food security from household to national level
* Integrated Sustainable Rural Development as part of overall economic development
* Application of effective monitoring system to measure the success of the programmes objectively
* Effective management of natural resources, taking into consideration issues related environment and development
* Enhancements of cooperation between the major United Nations environmental conventions are to be welcomed because they put more emphasis on sustainable development.
* Biotechnology has tremendous potential to improve the efficiency of agricultural production as long as thorny areas are address for the developing countries.
* Economic aspects such as access to markets, trade, investment, productivity and competitiveness cannot be over-emphasised
* Institutional development is of great importance for establishing the environment conducive for access markets, provision of legal and regulatory framework as well as for setting of norms and standards

TELEFOOD CONCERT

TeleFood is an initiative of the Food and Agriculture Organisation of the United Nations (FAO). It is an annual campaign of broadcasts; concerts and other events dedicated to helping the hungry help themselves. TeleFood harnesses the power of the people, including renowned singers, actors, etc, to make sure its message is heard around the globe. Money raised through TeleFood pays for small, sustainable projects that help small-scale farmers produce more food for their families and communities.

South Africa last year offered to host the concert and it is scheduled to take place on 2 March 2002 at the FNB stadium from 18h00-06h00. The concert will kick-off a yearlong campaign of fund-raising and awareness creation on food security. Funds raised will be donated to the FAO projects in Africa (South Africa included).

The event is fully funded by the Department and SABC2, Metro fm, and The Star newspaper are our media partners. Dr Miriam Makeba has been briefed and she will be soliciting support for the campaign as the FAO Ambassador. The publicity campaign for the concert will commence on the 13 February 2002 with a press conference to held in Pretoria. The following bands have confirmed their participation:

* Kai-Kai: Mali
* Tony Nguxi: Mozambique
* Oliver Mtukudzi: Zimbabwe
* Salif Keita: Senegal
* Beeskraal: South Africa
* Dr. Miriam Makeba: FAO Ambassodor -SA
* Caiphus Semenya: SA
* Brenda Fassie: SA
* Bongo Muffin: SA
* Mendoza: SA

A donation of R 40,00 and R 60,00 will be requested for entrance to unreserved and reserved areas respectively. The concert will be preceded by a VIP function and press conference at the stadium, an occasion where the "food mountain" will be unveiled.

Agricultural Sector Strategy

Last year the sector presented the Strategic Plan to the President. The importance of the strategic plan for agriculture lies in the fact that it unites government and industry in sharing a common perspective on the sector's strategic issues and farmers' organisations.

The vision for the sector implies sustained profitable participation in the South African agricultural economy by all stakeholders. It recognises the need to maintain and increase commercial production, to build international competitiveness and to address the historical legacies that resulted in skewed access and representation.

The strategic plan consist of three core strategies:

* Equitable access and participation: the objectives of this strategy are to ensure equitable access to and participation in agricultural opportunities; to deracialise land and enterprise ownership; and to unlock the full entrepreneurial potential in the sector.

* Global competitiveness and profitability: the aim of this strategy is to enhance profitability through sustained global competitiveness in the agricultural sector's input supply, primary production, agriprocessing and agritourism industries.

* Sustainable resource management: This strategy aims to enhance farmers' capacity to use resources in a sustainable manner and to ensure the wise use and management of natural resources.

As a first step to move the strategic plan closer to implementation, the partners identified the following priority programmes and actions:

* Implementing the broad-based safety and security strategy for good working and social stability, trust and confidence.

* Fostering a shared vision on agriculture, good governance and social partnerships.

* Fast tracking programme of land redistribution for agricultural developmen6t and processes of empowerment for targeted groups.

* Transforming agricultural research, transfer of technology, education and extension to be more responsive to markets.

* Redefining the mandate of agricultural marketing and international trade in the post-control board era against great global competition and demands for market access, infrastructure and information.

* Building credible agricultural statistical and economic analysis systems that will be accessible to all farmers and enterprises.

* Building of an agricultural risk management system that ensures that agricultural enterprises will recover, grow and develop after natural disaster.

* Developing and effective integrated risk management system for plant and animal health systems, price and income systems and natural disasters.

* Establishing the integrated rural financial services systems.

* Targeting investments in rural development nodes to provide livelihoods, infrastructure, irrigation, electricity, telecommunications, transportation, training and skills development.

* Establishing an agricultural co-operation programme for Africa to spearhead the role of agriculture in NEPAD.

* Lowering the overall cost of production.

AGRICULTURE'S ROLE IN NEPAD

The majority of Africa's people live in rural areas. However, the agrarian systems are generally weak and unproductive. Coupled with external setbacks such as climatic uncertainty, biases in economic policy and changes in world prices, these systems have held back agricultural supply and incomes in the rural areas, leading to poverty.

The urgent need to achieve food security in African countries requires that the inadequate agricultural systems be addressed, so that food production can be increased and nutritional standards raised.

Productivity improvement in agriculture rests on the removal of a number of structural constraints affecting the sector. A key constraint is climate uncertainty, which raises the risk factor facing intensive agriculture based on the significant inflow of private investment. Consequently, governments must support the provision of irrigation and develop irrigable land where private agents are unwilling to do so. The improvement of other rural infrastructure is also essential.

The following actions regarding diversification of production and export needs to be undertaken:

* Increase the security of water supply for agriculture by establishing small-scale irrigation facilities, improving local water management and increasing the exchange of information and technical know-how with the international community/

* Foster food security and rural development through the development and management of increased production to:
(i) Improve household food security
(ii) Reduce rural poverty and inequalities
(iii) Improve farming efficiency and profitability
(iv) Increase investor confidence in rural areas
(v) Sustain employment

* Enhance agricultural credit and finance schemes, and improve access to credit by small-scale and women farmers.

* Reduce the heavy urban bias of public spending in Africa by transferring resources from urban to rural activities.

* Encourage access for African food and agricultural products, particularly processed products so as to meet the standards required by international markets.

* Support African networking with external partners in the areas of agricultural technology and know-how, extension services and rural infrastructure.

Market Development and Trade Promotion

African agriculture has been characterised by a narrow range of products, which places severe limitations on its sustainability and competitiveness. Imperative is that the developed countries should initiate and sustain market access for the underdeveloped by:

* Abolishment of exports subsidies
* Encouragement of the flow of direct investment
* Improvement of technology and knowledge transfer
* Lowering of tariffs and reduction of tariff escalation
* Rule making should align favourably with the developing countries
* Development of micro, small, and medium agricultural related enterprises including the informal sector
Capacity building and establishment of necessary regulatory systems for trade in developing countries

AGRICULTURAL REGULATORY FRAMEWORK

Uniform and standards across provinces on animal and plant health related matters for provision of the overall guidance, policy development, decision making, national level planning, co-ordination and monitoring, to:

* Ensuring that food control is co-ordinated for tractability of food products destined for human consumption.

* Regulate and provide an integrated national management system supporting a sustainable use of genetic resources for food and agriculture.

* Reduce plant and plant products health risks by collating information and provide early warning systems in respect to outbreaks.

* Reduce animal and animal products sanitary risks by negotiating protocols for the import and export of animals and animal products.

FOOT AND MOUTH DISEASE (FMD)

South Africa is once again considered FMD-free zone, excluding the Kruger National Park, and surrounding game reserves. The surveillance systems are in place to ensure that all agricultural products entering and leaving the country are free of disease and thus safe for human consumption, and furthermore, all our ports are thoroughly monitored making sure that imported and exported goods are free of contaminating disease.

Currently, trade with various countries in livestock products has resumed in huge volumes.

EU AGREEMENT

The long-awaited Wine and Spirits Agreements between South Africa and the European Community were signed at a ceremony in Paarl last week.

The two agreements are separated for administrative purposes only.

The wine agreement is a technical agreement with three parts:

* Oenological practices, including lists of practices and additives (on a positive list basis) that are followed in the wine making process
* Intellectual property, listing names and Geographical Indicators (GIs) to be protected. In addition, a procedure is provided for resolving cases of trademarks that are similar or identical to GIs.
* Trade administration addresses issues such as harmonised certification, recognition of laboratories and cooperation of control authorities.

The spirits agreement deals with intellectual property and trade administration only. Issues related to tariffs are addressed in the Trade, Development and Cooperation Agreement (TDCA) and not in the W&S. The signing of the agreements ended a long and difficult negotiation process that started at the end of 1994. These agreements are part of a package of four agreements forging a long-term strategic partnership between South Africa and the European Union. The other agreements are the Trade, Development and Cooperation Agreement, the Science and Technology Agreement and South Africa's partial membership of the Cotanu Partnership agreement. The negotiations to conclude the Wine and Spirits Agreements have not been without controversy and various compromises were necessary to conclude the agreements.

It is anticipated that the Wine and Spirits Agreement will improve market access into the large European market for South African wine and spirits. Applying a duty free tariff quota of 42 million litres annually will ensure better access for South African wines. In addition the EU will make available an amount of i15 million for restructuring the South African wine and spirits industry. The signing of these agreements is an essential step in formalising South Africa's cooperation with the European Community in the wine and spirits trade.

Part of the agreement involves the phasing out of names traditionally used in South Africa for specific types of wines. The names Port and Sherry will be phased out over five years for exports to non-SADC markets, starting from 1 January 2000. It must be phased out for all markets after 12 years. South Africa will also phase out the name grappa, ouzo, korn/kornbrand, jägertee and pacharan within 5 years of entry into the agreements. South African GIs will also be recognised and protected by the EU.

The EU is the largest destination for South African wine and spirits accounting for well over 75% of our total exports in this sector. At the same time, it is the largest supplier of imported wine and spirits to the South African market.

Corporate Governance

In order to strengthen corporate governance the department aims to undertake the following activities:

* Develop a public-private sector partnership framework
* Establish a protocol for corporative governance
* Build an integrated agricultural knowledge system
* Introduce agriculture legislation for corporative governance
* Review the regulatory system
* Render excellent public service and administration
* Establish a frame-work of service delivery standards

Issued by Ministry of Agriculture and Land Affairs

14 February 2002